Same Thinking

 

*/By Rick Nason, PhD, CFA
Partner RSD Solutions Inc./*

Einstein once said that you cannot use the same thinking to solve a problem
as the thinking that caused the problem.  However, isn't that exactly what
we are doing with most of the regulatory frameworks around financial risk
management?  Yes, there will be those that argue that it has new ratios, new
definitions, different measures, etc. etc. etc.  But really – aren't
these really all more of the same, and aren't they really just more of the
same thinking?